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Palm oil price increased 3% , closed at highest level in a week

COMMODITIES(B-Trams):

SINGAPORE:Today Malaysian palm oil price Increased about 3% on expectations of tightnening supply and a gain in rival edible oils, closed to the highest level in a week.

On expectations of a tightening supply and a rise in the strength of rival edible oils, Malaysian palm oil futures closed Tuesday at their highest level in a week.

On the Bursa Malaysia Derivatives Exchange, the benchmark palm oil contract for delivery in June closed up 114 ringgit, or 3.19 percent, at 3,690 ringgit ($839.02) per tonne.

Read More : Palm Oil Prices Surges 2nd Day of Trading, It May Rise into 3,690-3,773 Ringgit

Palm recorded its sharpest daily rise in five weeks, rising for a second day in a row.

According to Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group, the contract increased in response to strength in global vegetable oil markets and an overnight recovery in crude oil prices.

According to Bagani, investors anticipate that Malaysia’s stocks will fall below 2 million tonnes by the end of March as a result of higher exports and lower production. Additionally, they are anticipated to decline further in April as a result of Indonesia’s export restriction until the end of Ramadan.

According to participants in the industry, participants told Reuters that palm oil’s rare premium over rival rapeseed oil and sunflower oil is likely to be temporary and that it should begin trading at a discount once top producer Indonesia eases export restrictions following Ramadan.

Also Read : Chicago Corn Futures Slumping As Weaker Crude and Rival Oils

Indonesia intends to set rough palm oil reference cost for April 1-15 at $898.29 per ton. According to the Societe Generale de Surveillance, a cargo surveyor, palm oil product exports rose 18.5% between February 1 and February 25.

The most active soyoil contract in Dalian went up 2.2%, while the palm oil  contract went up 2.7%. On the Chicago Board of Trade, the price of soy oil increased by 1%.

As they compete for a share of the global market for vegetable oils, palm oil price  is affected by changes in the prices of related oils.

After rising in the previous session, crude prices fell on Tuesday as investors focused on developments in the banking crisis and signs of rising Chinese demand. As a feedstock for biodiesel, palm oil is less appealing due to lower oil prices.

According to Reuters technical analyst Wang Tao, palm oil may return to its September 2022 low of 3,220 ringgit per tonne in the following quarter. This is because the bounce from this level is over.

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